Scribd Logo
Upload

Welcome to Scribd!

  • Bond Valuation

    Uploaded by

    ethiopian_11
    10 views2 pages
    This document contains information about an IBM bond that will mature on April 1, 2033 and pays a 9% annual coupon semiannually. Given a required return of 5%, the value of the bond is calculated to be $407.08 based on its future cash flows discounted at the required rate of return. A table also shows how the bond value would change at different assumed yields to maturity.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document contains information about an IBM bond that will mature on April 1, 2033 and pays a 9% annual coupon semiannually. Given a required return of 5%, the value of the bond is calculated to be $407.08 based on its future cash flows discounted at the required rate of return. A table also shows how the bond value would change at different assumed yields to maturity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Bond Valuation

    Uploaded by

    ethiopian_11
    This document contains information about an IBM bond that will mature on April 1, 2033 and pays a 9% annual coupon semiannually. Given a required return of 5%, the value of the bond is calculated to be $407.08 based on its future cash flows discounted at the required rate of return. A table also shows how the bond value would change at different assumed yields to maturity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    IBM Inc

    Bond Valuation
    Settlement Date 4/1/2007
    Maturity Date 4/1/2033
    Coupon Rate 9.00%
    Required Return 5.00%
    Redemption Value 1000
    Frequency 2
    Basis 0

    Bond Value $407.08

    Bond Value

    Bond Value
    $450.00
    YTM Bond Value
    $400.00
    5% $407.08
    6% $332.76 $350.00
    7% $274.23 $300.00
    8% $227.96 $250.00
    9% $191.24 $200.00
    10% $161.98
    $150.00
    11% $138.55
    12% $119.69 $100.00
    13% $104.44 $50.00
    14% $92.03 $0.00
    15% $81.87 4% 6% 8% 10% 12% 14% 16% 18% 20% 22%
    16% $73.50 YTM
    17% $66.56
    18% $60.75
    19% $55.87
    20% $51.72
    Value

    Bond
    Value

    16% 18% 20% 22%

    You might also like